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Prepared by StratagemTRADE.com and Scott
Writing under the nom de plume of J.L. LORD

Wednesday | May 6, 2020

Hello Eizell.

YESTERDAY'S CLOSING PRICES

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YESTERDAY: May 5

With crude oil in the toilet but opening $3 higher, the market took it as a huge relief and sign the economy is about to improve – even if it was just a technical bounce. If you throw a cat off a tall enough building, it too will bounce. The market didn't care, though.

The SPX opened 30 points higher and kept climbing until it reached a high of 2898.23 (+55.49) within the first 3 hours. ANALysts who just last week were prophesying testing the old March lows were now bullish. People wonder why I am bald? Things like this are what caused it.

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You would think a binomial coin flip such as “higher” or “lower” would eventually be right with these guys. Growing up. I am certain they were the ones always running for blocks to catch the bus and destined for Wall Street, Weatherman or Congress.

It looked as if we were finally having a chance of closing above SPX 2900 as oil was up $4 a barrel, but eventually the Fed had to pump the breaks. The Fed's Bullard came out stating that unemployment rate could now be above 20%, and indirectly urged the government to reopen before it wrecks the second half of the year.

This took half of the gains off of the SPX and 2/3 of the gains off the Dow, just when people were getting excited that the NASDAQ was only 1% away from being higher on the year.

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TODAY: May 6

Tough Call.

I got Monday and Tuesday right. Why ruin my batting average? LOL I should retire like Joe DiMaggio and Michael Jordan, not Mike Tyson.

Actually, it really depends on economic numbers and oil prices at this point, something I can't get a feel for at just under 2900. I am confused at these levels, but assume higher given that there is over $5 trillion in money-market funds and interest rates are at zero. Add that there is still a lot of bearishness, and it makes me bullish.

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Several weeks ago, I started to warn the carnivores who read this report to load up on meat. The food supply chain is broken and you just can't grow cows overnight. Yesterday, WENDY'S announced that they are not able to get beef for burgers at 20% of their stores. In this area, chicken and steaks are almost impossible to find at Costco. It is only going to get worse for a little while.

I am still standing by my prediction (made December 31, 2019) that we will be positive for the year and making new all-time highs by the end of the year. I maintained this stance even when the SPX was down -35% for the year.

S&P 500 Price Limits

From 8:30 a.m. to 2:25 p.m. CST, there are successive price limits corresponding to 7%, 13%, and 20% declines below the previous trading day’s reference price.

From 2:25 p.m. until the 3:00 p.m. CST close of the cash equity market, only the 20% price limit will be applicable.

2020 ONE-YEAR PREDICTION:

Average year with lots of inter42mittent volatility
(-11.22% so far)

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Class today will be in the MORNING starting 30 MINUTES BEFORE the market opens (8:00 CST). We will go into a review of Synthetics and then show piratical applications.

THIS IS GOING TO BE GREAT FUN!


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DISCUSSION BOARD

Up and Running for POT students (so far).

Really quickly...

To help in your quest for the best possible options trading outcomes, we would like to know what level of options trading knowledge and skills you currently have. Please click the button below to indicate what level of trader you are? Please skip if you already responded. Thank you for participating.

P.O.T. Schedule to come.

LAUGH OF THE DAY

Trading is a tough job on a stomach void of coffee and humor.
You provide the coffee and we will take care of the rest.

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Disclaimer

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